Chain hit by high debt, intense competition

Beleaguered sandwich chain Quiznos filed for bankruptcy protection in the U.S. on Friday to restructure its finances in the face of intense competition in the crowded fast-food arena. (Ed Andrieski/Associated Press)

Beleaguered sandwich chain Quiznos filed for bankruptcy protection in the U.S. on Friday to restructure its finances in the face of intense competition in the crowded fast-food arena.

Denver-based Quiznos said the move would not affect customers and said its almost 2,100 restaurants in 35 countries -- most of which are independently owned franchises -- would remain open.

The franchises are not part of the bankruptcy filing. Quiznos directly owns only seven stores.

The prepackaged restructuring is designed to cut the chain`s debt by $400 million US. In its Chapter 11 filing documents, Quiznos listed debts of more than $500 million US.